Magalong challenges lawmakers on pension

MANILA, Philippines — As active and retired military and uniformed personnel (MUP) may be made to contribute part of their income to help stave off a possible “fiscal collapse,” lawmakers should do their share by shunning corrupt practices like getting kickbacks from government projects, according to Baguio City Mayor and retired police general Benjamin Magalong.

In an interview with “The Chiefs” on One News on July 6, Magalong said some lawmakers and local chief executives still have pork barrel funds, which allow them undue control over the implementation of projects from which they draw fat commissions.

“I had a chance to talk to several contractors. I asked them assuming that I will take cuts from infrastructure projects, how much will it be? And they said about 10 percent to 15 percent or 20 percent to 25 percent, depending on the decision of the mayors or the lawmakers,” Magalong said.

He also revealed that members of the Bids and Awards Committee receive commissions, as do other individuals involved in the decision-making for projects.

“Only about 45 percent to 52 percent will be left (to the actual contractor and project). In short, if the project is worth P100, they said Sir, they will have to settle for P42.50 to P55, including their profit so they will be forced to make substandard projects,” the mayor explained.

“The way they dispose of it is institutional. Some congressmen have several projects and roads but the bidding was rigged. You can check the profile of some legislators and LGU executives – many of them are contractors and suppliers. They get a percentage and they also get the projects as contractors,” he pointed out.

While the Supreme Court has declared pork barrel as unconstitutional, Magalong said some lawmakers and LGU officials have managed to go around the ruling by just rigging the bidding process, as they are either the contractors or the suppliers, or both.

Magalong, widely known for advocating good governance, said he was renewing his call against corruption amid a possible restructuring of the pension system for MUP as proposed by Finance Secretary Benjamin Diokno.

It was Diokno who raised the scenario of “fiscal collapse” if the amount of yearly pension payout to MUP is allowed to continue. For this year, MUP pension payout is estimated at P213 billion and is expected to reach the P1-trillion mark by 2035.

The Senate committee on national defense, chaired by Sen. Jinggoy Estrada, recently conducted a public hearing on the proposal to reform the MUP pension system.

The Marcos administration’s economic team has proposed that MUP in active service contribute five percent of their monthly pay to their retirement fund for the first three years, while new entrants would be required to contribute nine percent of their basic salary and longevity pay.

Willing

The Baguio City mayor, a retired police general, stressed that active and retired MUP “are willing to contribute a reasonable percentage of our pension to the national government but nothing we heard from our legislators that they are willing to give up their pork barrel.”

“We, in the uniform service, are willing to give up a small amount of our pension just to help the national government, just to address this huge deficit, just to address this big national debt. Let’s wait to see what our brave legislators have to say,” Magalong said in his speech during a virtual flag raising ceremony on July 3 at Camp Crame.

“Hopefully, one of them will come out in the open… It is about time that legislators should also give a big contribution to address national government issues, especially on our financial debts,” he noted.

Now on his second term as Baguio City mayor, Magalong has been pushing for good governance. While at the PNP, Magalong was known for setting into motion several programs promoting transparency and good governance.

He stressed that one aspect of good governance is transparency in financial transaction.

“There is one particular area characteristic of good governance that there are so many challenges, and that is transparency in financial transaction and at the same time accountability,” he said.

“Despite all these laws, and pronouncements of the previous presidents, it’s becoming worse, the president cannot do it alone, he needs the help of everyone, nobody is talking and everybody is so silent about it, who will start?”

He admitted being dissuaded by some quarters from pursuing good governance, as he would be stepping on people’s toes.

“I don’t think that is the right attitude. We have to do what is right even if it is something unpopular, and even if they say it is something unpopular, my mindset is we can always make the impossible possible, the world was never created in one day, and big things start from small beginnings, so we are going start it,” he said.

“I don’t expect anything drastic on the part of our legislators. What is important is I raise awareness of the ill effects of corruption, and at the same time raising awareness of the possible effect on good governance, and hoping to change the mindset of our people, people should now demand good governance from their leaders.”

Also on “The Chiefs,” Sen. Ronald dela Rosa said he was accepting Magalong’s challenge.

“If that’s the challenge for us to contribute, I am willing to contribute to help the government. I am willing to donate a portion of my retirement pension to help address the issue on MUP pension,” Dela Rosa, a former national police chief, said.

He said that while senators would help allocate budget for certain projects, they would readily disengage as soon the projects are approved. “We shouldn’t care about their implementation anymore,” he said.